hard · Volume Price Analysis
An equity moves into a congestion zone after a long decline. You observe a series of narrow-spread down candles accompanied by volume that is consistently double the 20-day average.
What does the Law of Effort vs. Result suggest here?
- The market is in a price waterfall
- Insiders are absorbing the remaining selling pressure
- This represents a low-volume test of supply
- Sellers are in complete control of the trend
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